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Yahoo’s Project Panama is on the way and looks like it’s good for their stock price too. They are finally taking the cue from Google and changing their ad ranking system to be based on both bid price and “ad quality”. This change will take place on February 5th, 2007. Here’s what they said about ad quality on their blog:

An ad’s quality will primarily be determined by its historical performance—its click-through rate relative to its position in search results—as well as its expected performance relative to other ads displayed at the same time.

If you’ve been an AdWords advertiser for a while, this should be a piece of cake, right? Anyway, the way I see it, the advantage would be for those who want to port their AdWords campaigns over, or rather duplicate them in YSM. Read more about it on the YSM blog.

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